Yes, you can start a business in Dubai while being employed and it is legal. But, you will need to attain certain legal documents for that, for example, a non-objection certificate. You need a non-objection certificate from your current employer to start a new business in Dubai while being employed.
Let us see if it is mandatory or not and if there is a way to do business without it.
Well, NOC is mandatory in some places but, there are free zones where you need not have a NOC to start a business. If you are going to set up your business in a free zone that demands one, you will need to have your current employer’s permission.
Acquiring a NOC from the current employer is a task that becomes complex when they refuse the request. Some employers may get concerned about competition, trade secrets, and security when an employee asks for a NOC to build a similar business in the city.
In that case, you may have to quit your job to start your own dream business. Once you no longer work for them, you don’t need a NOC to start your business in any free zones. But be careful to check your visa status, you don’t need this to affect your visa status if you are a foreign national. There is nothing to worry about if you are not setting up a similar company as most employers understand and provide NOC if your business will not compete with them.
The Ministry of Human Resources and Emiratisation improvised existing labour laws in the UAE and introduced a new law to protect employees from bullying and sexual harassment.
The UAE also introduced legislation around part-time and flexible working hours. The new rules acknowledge that an employee can work remotely or start a business with the employer’s approval.
The new legislation also says employees who resigned are also entitled to a full end-of-service gratuity, after completion of one year of service. Before this, it was after five years of service.
Being said that, it is the employer’s choice to accept or reject a NOC request. And even if your employer rejects the request, you can still start a business while being a legal employee in Dubai. How is that possible?
There are many free zones in the UAE that don’t require NOC for launching a business while being a legal employee in Dubai. You need to apply for an instant license to set up a business, in this case.
Below given are the steps one needs to follow to acquire an instant license.
To apply by yourself, obtain a UAE pass by registering on the official portal using your Emirates ID. Update your business profile from DED’s website to make the government authorities aware of your legal status in the UAE.
Starting a business while being employed is legit and legal in the UAE. Abide by the rules and regulations, get the necessary documents, apply for an instant license or select free zones that don’t demand a NOC to start a business on your own.
The procedures are a little bit crucial, but submitting your procedures to a trusted business consultancy like Bizvise, will make these procedures easy. If you wish to start a business while being employed and have no time or idea of how to do so, connect with us, and let us help you to make your dream business come true.
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